The company is paying $725 million for the commercial locks business of Stanley Black & Decker

Switzerland’s Dormakaba Holding AG is buying the commercial locks business of Stanley Black & Decker Inc. in a move that leaves the three largest players in the North American market all based overseas.

Dormakaba is paying $725 million in cash for Stanley’s Indianapolis-based business which employs 1,000 U.S. staff and sells brands including BEST that are widely used in schools and hospitals, expanding the Swiss company’s...